AT&T, the No. 2 U.S. mobile service provider, said it added more than 550,000 contract customers in the quarter, slightly ahead of its target for about 500,000 and an improvement from its 320,000 net additions in the year-ago quarter.

The company posted earnings of $3.82 billion, or 71 cents per share, compared with $3.97 billion, or 66 cents per share in the year-ago quarter.

Revenue rose to $32.08 billion from $31.58 billion, Wall Street expectations were for $31.81 billion, according to Thomson Reuters I/B/E/S.

AT&T sold a record 6.8 million smartphones, activating 3.7 million iPhones during the quarter. AT&T also said it activated a company record number of Android smartphones during the quarter.

AT&T shares were mostly flat in after-hours trading after the new earnings report, increasing by $0.10.